Vivad Se Vishwas Scheme 2020 Explained

April 30, 2020
Vivad Se Viswas Scheme

Vivad Se Vishwas Scheme has been passed by Parliament to  ease the compliance burden on the part of tax-payer. There are 483,000 pending income tax cases before appellate authorities as on 30 November 2019. The disputed tax in these appeals is nearly Rs 9.32 trillion, which is nearly a year’s direct tax collection for the government. The scheme intended for reducing litigation and for settling matters that have been pending for several years. The government expects to resolve 90% of the income tax disputes through this scheme.

Objectives of Vivad Se Vishwas Scheme 2020

  • Reduce income tax pending litigation
  • Generate timely revenues for the Government
  • Help taxpayers end their tax disputes with the department by paying disputed tax and get waiver from payment of interest and penalty. Also get immunity from prosecution

Features of Scheme

  • The scheme will be applicable to all appeals/ petitions filed by taxpayers or the income tax department, which were pending until 31 January 2020, with either the Commissioner of Income-tax (Appeals), Income-tax Appellate Tribunal, High Court, or the Supreme Court
  • The due date to pay the amounts of disputed tax was 31st March 2020 without any additional payment.
  • Following the lockdown situation in the country, the scheme has been extended to 30 June 2020 without any additional payment
  • For payments made from April 1, an additional 10% of the disputed amount was to be paid

Settlement Amount under Vivad Se Vishwas Scheme 2020

Disputed Tax Amount Amount Payable if Application is filed before 30th June 2020 Amount Payable if Application is filed after 30th June 2020
Includes Tax, Interest and Penalty 100% of Disputed Tax 100% of Disputed Tax + 10% of Disputed Tax
Includes Tax, Interest and Penalty determined in search cases by IT department 100% of Disputed Tax + 25% of Disputed Tax 100% of Disputed Tax + 35% of Disputed Tax
Includes Interest and Penalty 25% of Disputed Tax 35% of Disputed Tax

The final deadline of scheme is yet to be declared.

We hope you liked this article on Vivad Se Vishwas Scheme. Here are some useful government schemes for you to read next:

Download this article as PDF

Click to go to RBI Grade B Preparation Page  | Click to read more government schemes